Trading Update and IP Acquisition
21 January 2021
Team17 Group plc
("Team17", the "Group" or the "Company")
Trading Update and IP Acquisition
Team17 , a global games entertainment label, creative partner and developer of independent ("indie") premium video games, provides the following pre-close trading update for the year ended 31 December 2020 ahead of publication of its full year audited results.
Trading Update
The Company is pleased to report that Group performance for the year ended 31 December 2020 will be ahead of the Board's expectations in what has been an extraordinary and challenging year for many, delivering year on year revenue and adjusted EBITDA growth of c34% and c36% respectively. Our growing portfolio has continued to perform well in H2 2020, in particular over the peak Christmas trading period. We launched 9 titles in H2, more than any previous year despite the impact of ever changing working restrictions as a result of the pandemic. Our portfolio grew stronger during 2020 with additions to the Worms, Escapists and Overcooked franchises as part of the 12 titles launched in the year across a variety of platforms, further strengthening our diverse gaming portfolio.
As outlined in our H1 results, the Company saw one-off commercial benefits delivered in Spring last year, however these quickly normalised in early H2. We were particularly pleased with the performance in the peak November and December months, maintaining strong retail pricing in the face of an aggressive competitive environment, which is a testament to both the quality of our portfolio and our talented commercial team. We continue to monitor the potential headwind impacts of the prolonged pandemic, uncertain macro-economic and consumer environments alongside manufacturing and supply chain challenges facing next generation and existing gaming hardware. We expect these to be ongoing and key considerations in 2021.
The Company looks ahead to 2021 with confidence in our pipeline and our teams' ability to continue to build the business and whilst we are assuming any additional one-off benefits linked to the pandemic that impacted the 2020 results will not be repeated, we believe the business will continue to deliver underlying growth and support the long term prospects aligned with our ambitious strategic plans.
2021 brings a solid and very diverse pipeline of both existing IP on new platforms and new IP to look forward to including: Worms Rumble and Overcooked: All You Can Eat on more platforms, Rogue Heroes, The Unliving, Epic Chef, Super Magbot, Greak: Memories of Azur, Honey I Joined a Cult, Hokko Life, a number of unannounced games alongside Hell Let Loose to exit Early Access and the announcement of additional platforms to support. We look forward to providing further updates in the coming months.
The Company expects to report its full year results for the year ended 31 December 2020 during March 2021.
Acquisition of Golf With Your Friends ("GWYF")
We are equally delighted to announce the acquisition of all rights and assets for GWYF, an existing 3rd party label title to our 1st party family for a total consideration of 12 million ("the Acquisition").
GWYF is a multiplayer golf video game created by Australian developer Blacklight Interactive and published by Team17. The game first launched in Early Access on Steam in 2016, Team17 then partnered with Blacklight Interactive in 2019 and was involved in the ongoing development and publishing of the title for its full release on 24 May 2020 for PC, Nintendo Switch, PlayStation 4, and Xbox.
The Acquisition will enable Team17 to further expand both its portfolio and franchise footprint, enabling the Group to increase 1st party IP and ultimately create additional opportunities to extend the lifecycle of the existing game. This will include further downloadable content as well as exploring potential sequels and other opportunities for the GWYF IP.
Since partnering together in 2019, Team17 has helped to more than double the number of GWYF owners to 5.5 million, through increased production values, new platforms, IP cross-over and positioning as a higher value proposition.
The Acquisition will be satisfied wholly in cash, with an initial payment of £9m and a further £3m paid within 12 months.
Debbie Bestwick, Chief Executive Officer of Team17 Group PLC, said:
"2020 is definitely a year we will not forget in a hurry and also provides insights into the challenges we can expect as a workforce in 2021. Whilst the Board and I are very pleased with the financial results we are even more pleased with the resilience and dedication shown by our Teamsters and Label partners to deliver, launch and sell the complex games we made in 2020. Many of our games are local co-op and online play and we added cross play to some of our titles alongside numerous quality of life and gaming enhancement updates across our back catalogue. We achieved this under the ever changing global restrictions and we should not underestimate the support and passion for the games we create.
We are also delighted to start 2021 with the announcement that we have acquired GWYF and see great potential in this IP. Over the last two years, GWYF has shown strong consumer demand and mass market appeal, doubling its owner base and achieving success on multiple gaming platforms. GWYF is the type of IP we believe is right for ownership, it is successful and proven but still at the start of its journey. The team at Blacklight Interactive can be assured that we will take great care of this amazing IP"
The Board and management look forward to 2021 and continuing to build on our successful and robust journey since listing in 2018!"
Enquiries:
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Team17 Group plc Debbie Bestwick MBE, Chief Executive Officer Mark Crawford, Chief Financial Officer
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via Vigo Communications
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GCA Altium (Nominated Adviser) Adrian Reed / Paul Lines
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+44 (0)845 505 4343 |
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Berenberg (Broker) Chris Bowman / Toby Flaux / Marie Moy / Alix Mecklenburg-Solodkoff
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+44 (0)20 3207 7800 |
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Vigo Communications (Financial Public Relations) Jeremy Garcia / Charlie Neish |
+44 (0)20 7390 0238 |
About Team17
Team17 is a global games entertainment label and creative partner for independent ("indie") developers, focused on the premium, rather than free to play market, and creating games for the PC, console, mobile and tablet gaming markets.
Alongside developing the Company's own games in house ("first party IP"), Team17 also partners with independent developers across the globe to add value to their games in all areas of development and production and in bringing them to market across multiple platforms for fixed percentage royalties ("third party IP").
Since foundation in 1990, the Company has launched over 100 games, including the iconic Worms, Overcooked! and Escapists franchises, Yooka-Laylee, Yoku's Island Express, My Time at Portia, Hell Let Loose, Blasphemous, Golf With Your Friends, Neon Abyss and Moving Out making Team17 one of the most prolific developers and diverse partners of games for the indie market.
Visit www.team17.com for more info.
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